Legal Question in Wills and Trusts in New York

Re: beneficiary

There is generally no federal income tax on life insurance death benefits paid to a named beneficiary but depending on the size of the estate and all the circumstances, there could be federal estate taxes. 401K proceeds generally are taxable but if you are the decedent's spouse you may be able to spread out or delay payment of the taxes.

This discussion is general in nature and is not intended to give legal or tax advice based upon a particular circumstance. The resolution of each case depends upon the unique facts of that case. Also, each state has different income tax laws. Please contact a tax attorney or other tax professional to review your situation in detail.